Published on 11/4/2013 in the Prospect News Investment Grade Daily.
New Issue: Monsanto sells $1 billion issue of three-, five- and 30-year notes
By Aleesia Forni
Virginia Beach, Nov. 4 - Monsanto Co. priced $1 billion of senior notes (A1/A+/A+) in three tranches on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes priced tight of talk.
There was a $400 million tranche of three-year floating-rate notes sold at par to yield Libor plus 20 basis points.
A $300 million tranche of 1.85% five-year notes was priced with a spread of Treasuries plus 53 bps, or 99.861 to yield 1.879%.
Finally, a $300 million part of 4.65% 30-year notes sold at 93 bps over Treasuries.
Pricing was at 99.951 to yield 4.653%.
BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
Proceeds will be used to finance the acquisition of Climate Corp. and for general corporate purposes.
The company provides agricultural products for farmers and is based in St. Louis.
| Issuer: | Monsanto Co.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, Mitsubishi UFJ Securities (USA), Inc., RBS Securities Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc., Rabo Securities USA, Inc., Wells Fargo Securities, LLC, BNY Mellon Capital Markets LLC, Fifth Third Securities, Inc., Santander Investment Securities Inc., SG Americas Securities LLC, Standard Chartered Bank, UniCredit Capital Markets LLC, Williams Capital Group, LP
|
| Trade date: | Nov. 4
|
| Settlement date: | Nov. 7
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| Floaters due 2016
|
| Amount: | $400 million
|
| Maturity: | Nov. 7, 2016
|
| Coupon: | Libor plus 20 bps
|
| Price: | Par
|
| Yield: | Libor plus 20 bps
|
|
|
| Notes due 2018
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2018
|
| Coupon: | 1.85%
|
| Price: | 99.861
|
| Yield: | 1.879%
|
| Spread: | Treasuries plus 53 bps
|
| Price talk: | Treasuries plus 55 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Notes due 2043
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2043
|
| Coupon: | 4.65%
|
| Price: | 99.951
|
| Yield: | 4.653%
|
| Spread: | Treasuries plus 93 bps
|
| Price talk: | Treasuries plus 95 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
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